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Government Benefits

File and Suspend: Changes to Social Security May Affect Retirement Planning

By Elder Law, Government Benefits

In the fall of 2015, Congress voted down the Social Security strategies known as “file and suspend” and “restricted filing” which were collectively called “claim now, claim more later.” These practices allowed couples to increase their benefits by thousands of dollars. However, because of the Bipartisan Budget Act of 2015, spousal benefits could cost Americans millions of dollars.

 

File and Suspend

 File and suspend was a strategy utilized by married couples about to retire. One spouse would apply for Social Security upon retirement and then ask to suspend their benefits. The other spouse would then be eligible for a spousal benefit, which is half the normal benefit. While this process is happening, the spouse with suspended benefits would watch their Social Security benefit increase at 8% each year until the spouse turned 70.

However, now due to the changes enacted in Congress, spousal benefits may only be received when the spouse whose financial record is being used for the application is currently receiving their own benefit.

 

February 28, 2017
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Is a Third-Party Supplemental Needs Trust right for you?

By Asset Protection Planning, Estate Planning, Government Benefits

While a first-party supplemental needs trust is designed to allow a disabled beneficiary place their own funds or assets in a trust, a third-party supplemental needs trust is meant for family members to assist a person with disabilities.

Just like a first-party supplemental needs trust, the assets in the third-party trust do not jeopardize the beneficiary’s eligibility for Supplemental Security Income (SSI). A third-party supplemental needs trust can hold any assets that the family wishes to provide (e.g. stocks, bonds, houses, etc.). Rather than giving the disabled individual the funds directly, the family can transfer them to the trust in order to provide a benefit to the beneficiary while not disqualifying the beneficiary from receiving government benefits.

While the beneficiary of the first-party supplemental needs trust must be below the age of 65, the age of the beneficiary does not matter for a third-party supplemental needs trust. Another key difference is that there is no payback requirement for a third-party supplemental needs trust. This means that when the beneficiary passes away, the remaining assets in the trust can be passed to relatives or charity instead of being used to reimburse the government.

If you have further questions on this topic or wish to set up a third-party supplemental needs trust, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

October 21, 2016
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Is a First-Party Supplemental Needs Trust right for you?

By Asset Protection Planning, Estate Planning, Government Benefits

A first-party supplemental needs trust is created to allow disabled persons to receive the benefit of their funds in a trust while still qualifying for and receiving government benefits. An alternative to this trust is a pooled trust. A pooled trust is created by a non-profit organization, and individual beneficiaries can create accounts within the trust.

By pooling the assets of disabled persons, the organization can manage one master trust and maximize the benefits for the beneficiaries. The non-profit can make more stable investments and provide more services than a normal supplemental needs trust.

Most people with special needs join a pooled trust when they do not have anyone to create a first-party supplemental needs trust for them. And just like a first-party supplemental needs trust, a pooled trust is used for people to qualify for and remain eligible to receive government benefits, such as Medicaid and SSI.

A couple advantages of a pooled trust are the low costs and the fact that the funds will be used to help others with disabilities.

If you have further questions on this topic, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

 

October 18, 2016
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What is the Medicaid Estate Recovery Program?

By Estate Planning, Government Benefits, Medicaid Planning

If individuals receive Medicaid benefits during their lifetimes, Medicaid may have a claim against their estates for any amount spent on the recipient. This is called the Medicaid Estate Recovery program. The program, which operates on a state and federal level, is designed to recover the assistance payments from the assets in the estate.

Estate recovery applies to anyone who received government benefits and were age 55 years or older at the time of their death. The law requires that the personal representative or attorney of the estate send a copy of the death certificate to the Agency for Health Care Administration to determine whether Medicaid provided assistance. If so, a claim is then filed with the probate court.

The main targets of this program are nursing home residents who were also Medicaid recipients during their lifetime. If the Medicaid recipient leaves behind a spouse, a child under the age of 18, or a blind/disabled child, the estate recovery does not apply.

Bach & Jacobs, P.A. provides assistance to personal representatives and trustees who are responsible for administering estates and trusts. If you have been named as a personal representative or trustee for someone who has recently died, contact our firm for a consultation with one of our attorneys.

October 11, 2016
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What is an elder law attorney?

By Elder Law, Estate Planning, Guardianship, Medicaid Planning, Medicare, Probate, Tax Law

An elder law attorney, also known as an elder care attorney, is familiar with the state and federal laws that impact seniors and their well-being.

These attorneys are well-versed and specialize in a range of areas:

  • Estate planning
  • Powers of attorney
  • Medicaid
  • Medicare
  • Veterans benefits
  • Probate and trust administration
  • Nursing homes
  • Elder abuse and fraud

Elder law attorneys allow you to plan ahead. By meeting with an elder law attorney and setting up documents, you can protect your assets, properly pass your estate to heirs, and name individuals to make health care and financial decisions for you when you are unable.

If you have further questions or wish to set up documents, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

September 30, 2016
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Does Medicaid Consider the Assets of My Unmarried Partner?

By Asset Protection Planning, Government Benefits, Medicaid Planning

For unmarried individuals applying for Medicaid who have not commingled their funds, the state will not count the assets and income of the individuals’ partners.

The state will treat each partner as single when determining their eligibility for Medicaid. It is important for unmarried couples to be aware of transfer rules, however. For married couples, they are free to transfer assets to one another, but for unmarried couples, they may be penalized for a transfer of assets with a period of ineligibility for benefits.

To find out more about becoming eligible to receive Medicaid benefits to cover long term care, contact Board Certified Elder Law Attorney Babette Bach, Esq. at (941) 906-1231.  Babette is experienced in giving Medicaid eligibility advice and navigating the process of applying for and receiving Medicaid benefits while protecting your assets to the highest degree possible.

 

 

September 9, 2016
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Florida Senate adopts several elder care bills

By Elder Law, Estate Planning, Government Benefits, Guardianship

Bill 0080 — Relating to Family Trust Companies

  • This bill revises the Family Trust Company Act to require that all family trust companies apply as a licensed family trust company, register as a foreign licensed family trust company, or stop doing business by December 30, 2016 in the state of Florida.
  • It also requires the family trust company to have at least three directors/managers, with at least one of those directors/managers being a resident of Florida.

Bill 0232 — Relating to Guardianship

  • The passing of this bill renames and expands the Statewide Public Guardianship Office to the Office of Public and Professional Guardians, giving it the responsibility of the administrative duty of writing the rules for the regulation of professional guardians.
  • The bill establishes stricter regulations of professional guardians, who previously have not been closely supervised by the state

Bill 0494 — Relating to Digital Assets

  • Dubbed the “Florida Fiduciary Access to Digital Assets Act,” this bill allows fiduciaries to manage and control digital assets the same way they manage tangible assets.
  • This bill also grants custodians of digital assets the right to interact with the fiduciaries in order to honor the fiduciaries’ requests
  • Lastly, Bill 0494 allows for courts to authorize a guardian the right to access the digital assets of a ward, if the circumstances permit

Bill 1335 — Relating to Long-term Care Managed Care Prioritization

  • This bill not only requires the Department of Elderly Affairs to keep a wait list for the enrollment for community-based services, but also requires the DEA to prioritize individuals through a frailty-based screening tool.

These bills took effect July 1, 2016.

August 12, 2016
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Florida launches ABLE United Program

By Asset Protection Planning, Elder Law, Government Benefits, Medicaid Planning

Being one of the first ABLE (Achieving a Better Life Experience) savings plans in the country, Florida’s ABLE program now allows individuals with disabilities to maintain their eligibility for government benefits while owning more than $2,000 in assets.

As of July 13, 2016, Intuition ABLE Solutions has partnered with the Florida Prepaid College Board to launch the program. Qualifying individuals are required to hold their assets in ABLE accounts, which are modeled after college savings plans. The disabled individual acts as the owner and beneficiary of the account, and the growth of the account is tax-free. Up to $100,000 of the account is considered a non-countable resource. Funds may be withdrawn tax-free for qualifying expenses such as transportation, medical expenses, and housing.

However, there are several restrictions to the program. The individual applying for the program must have developed the disability by his/her 26th birthday. When the individual passes away, the state government must be paid back from any funds that remain in the account. Also, no more than $14,000 per year may be contributed to the account by the individual. The maximum limit of the account is $418,000.

If you have further questions on this topic or want to find out whether you or a loved one could benefit from an ABLE account, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

August 9, 2016
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New law signed by President Obama will require hospitals to provide Observation Status notice to patients:

By Elder Law, Medicare

When an individual goes to the hospital, they may not be admitted right away.  If one is not “admitted” to the hospital, Medicare will not pay for hospitalization and a patient may have a large medical bill as a result.  There may be a period in which an individual is being “assessed”.  This is called “Observation Status”.   Observation status ends once a patient is admitted or discharged.

After a three (3) night hospital stay, Medicare will cover rehabilitation.  Previously, patients are not aware of the difference between observation status and being admitted.  The new law known as Notice of Observation Treatment and Implication for Care Eligibility (NOTICE) Act signed by President Obama will take effect one year from August 6, 2015, the date it was signed.  Hospitals have to develop a notification system within this year.

The new law will require the hospitals to give notice to the patients who have been under observation status for more than 24 hours of their outpatient status within 36 hours or upon discharge, whichever happens sooner.  The notice must advise the patient of their outpatient status and advise that their stay does not qualify for rehabilitation services covered by Medicare because they did not meet the three (3) night requirement.

This is one step closer to ensuring hospital patients are properly being informed.

October 7, 2015
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How can I help my loved one with special needs save for the future without affecting their state and federal benefits eligibility?

By Estate Planning, Government Benefits, Medicaid Planning

A new federal law allows individuals to help their loved one with special needs save for their future without jeopardizing their public benefits.  In December of 2014, the Federal Achieving a Better Life Experience (ABLE) Act passed through Congress.  This legislation allows anyone who became disabled before age 26 to save up to $100,000 (a large increase from the previously allowed $2,000) in a tax free account which will not affect their eligibility for state or federal benefits.  The money in an ABLE account can be used for education, housing, transportation, employment support, personal support services, legal fees, health expenses, funeral expenses, and financial management.  Regulations for these accounts are still in development but accounts should be able to be set up starting around mid-June of 2015.

If you have further questions or need Medicaid planning services for your loved one with special needs, contact Babette Bach, Esq., a Florida Board Certified Elder Law Attorney, at (941) 906-1231.

July 24, 2015
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